Elpitiya Plantations Ltd. (EPL), Aitken Spence’s plantation arm recorded its best year of profits during the financial year ended 2007/08.

Profit-after-tax improved to Rs 170.2 m, up from Rs 7.8 m in the previous year. Turnover rose 41% to reach Rs 1.81 b.

Premium tea prices and returns from diversification into multi crops, especially palm oil contributed strongly to the bottom line.

Chairman of Aitken Spence Plantations, Mr J M S Brito said, “We have had an excellent year which had seen our strategy of diversification paying off. Tea production and bought leaf production improved over the previous year. There was a significant improvement in palm oil production, which is now gradually increasing its productivity. Inclement weather during the year saw rubber production decline compared to the previous year.”

The company observed that the sales average for tea showed a distinct improvement after September 2007 particularly in the high grown areas where a larger segment of tea in EPL is produced. Tea prices in the low grown areas continued to rise during the period under review.

Boosted by a rising demand for edible oils in the internationally and the interest in bio fuels, Elpitiya saw most improvement in returns on palm oil.

The company also invested heavily into energy saving devices such as hot water generators, capacitor banks and energy saving withering fans, which all have contributed to controlling costs despite the wage impact during the year. EPL is in the process of completing a small hydropower project, which will supply power to the national grid on a Letter of Intent signed with the CEB. The company noted that there is significant potential to develop hydropower in the future.

EPL developed over 400 ha of forestry, which the company intends to add value to in the future.

Elpitiya’s other